G4G Resources Ltd.
TSX VENTURE : GXG

G4G Resources Ltd.

March 03, 2008 08:00 ET

G4G Resources Signs Agreement to Partner With Iron Mineral Beneficiation Services (IMBS) (Proprietary) Ltd. for Technology to Convert Iron Ore Fines Into Iron and Steel

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 3, 2008) - G4G Resources Ltd. (TSX VENTURE:GXG) today announced the execution of a Memorandum of Understanding (MOU) with IMBS to establish a joint venture to utilize Finesmelt™ technology, a process which converts superfine iron ore into high quality iron units. G4G Resources is also exploring the possibility of expanding the relationship through the acquisition of equity in IMBS.

The Finesmelt™ process manufactures metallic iron units for use in traditional blast and electric arc furnaces. Benefits of this technology include:

- Low capital cost

- Capacity to process iron ore waste dumps and tailings

- Ability to process superfine iron ore

- Ability to generate up to 85% of electricity requirements

- Substantial savings in production costs

- Modular design allows ease of deployment and structured scalability

IMBS is a South African based company that manufactures iron units for sale to the iron and steel industry utilizing their Finesmelt™ technology. Utilizing this unique beneficiation process, G4G Resources intends to enter into joint venture partnerships to produce iron ore units in various regions, including North America, South America and Europe.

"Due to the high demand for scrap materials used in the production of commercial iron and steel, supply of alternative iron units is critical to meet the demands of the steel industry. The Finesmelt™ process has the potential to deliver iron units well below average costs and will play a major role in supplying high quality feed stock to the steel industry throughout the world," commented Peter Arendt, President and Chief Executive Officer of G4G Resources Ltd.

"This is an exciting strategic development that will give G4G the opportunity to generate cash flow," said John Beachy Head, Chief Executive Officer of IMBS. "We are excited that G4G will bring significant resource to IMBS' business, which is closely aligned with our global roll out strategy."

IMBS and the Industrial Development Corporation (South Africa) will build the first commercial scale plant using Finesmelt™ beneficiation technology. The plant will be located in Nigel, Gauteng, South Africa and aims to produce 48,000 tonnes of Hot Briquetted Iron ("HBI") and 24,000 tonnes of ferrochrome per year, commencing in January 2009. Thereafter, a larger scale production plant with an initial capacity to produce a minimum of 500,000 tons of iron units per year will be commissioned in partnership with a large iron ore producer (see Industrial Development Corporation press release via the following link: http://idc.mbendi.com/a_sndmsg/news_view.asp?PG=123&I=89942).

With the MOU in hand, G4G Resources will now proceed to the next step of the project, which will include initiating a scoping study on the economic viability of a Finesmelt™ project.

About G4G Resources

G4G Resources is a Canadian-based mineral exploration and development company focused on base metal projects. The Company is actively evaluating a number of partnership and acquisition opportunities to create and enhance shareholder value.

Forward-Looking Statement

This document may contain or refer to forward-looking information based on current expectations, including, but not limited to timing of mineral resource estimates, future exploration or project development programs and the impact on the Company of these events. Forward-looking information is subject to significant risks and uncertainties, as actual results may differ materially from forecasted results. Forward-looking information is provided as of the date hereof and we assume no responsibility to update or revise them to reflect new events or circumstances. For a detailed list of risks and uncertainties, as it relates to G4G Resources Ltd., please refer to the Company's 2006 Annual Report filed with SEDAR on May 1, 2007.

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The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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